What Fiduciaries Need to Know About Active Management of Life Insurance Trusts (AMLITs)

May 17, 2024

Fiduciaries are concerned with life insurance planning because of the conflicts of interest and lack of transparency. They are frustrated that they can’t tell which policy will lead to a better outcome for their clients.  They are worried when they work with insurance advisors who do not use care, skill, prudence, and diligence. We will discuss guidance from FINRA, the OCC, the Society of Actuaries, the UPIA, NYS DFS Reg 187, and adjudicated lawsuits related to life insurance.   This offers guidance to the worries and concerns outlined in the previous paragraph. This program will help attendees understand the “black box” of life insurance. How can practitioners help clients achieve better outcomes and further strengthen client relationships? What steps can fiduciaries take to reduce fiduciary risk in irrevocable life insurance trusts (ILITs)? How to use independent research for life insurance just like you use independent research from Morningstar for investments? Understand and use Monte Carlo simulations for life insurance plans. Improve benefits for insurance/ILIT beneficiaries when the life insurance is no longer needed for its initial purpose. How practitioners can apply prudent investor guidelines to life insurance product selection and portfolio management. How these guidelines are based on established asset management doctrines of benchmarking, cost analysis, performance and risk, etc. Practical guidance on how fiduciaries can guide their clients’ insurance decisions based on a patented prudent process for insurance selection and retention. The program will explain the current standard of care and why "side by side" life illustration comparisons are considered “misleading” by industry regulators.   Speakers: Steven Zeiger, of KB Financial, and Martin Shenkman, Esq.   *This may constitute attorney advertising. * No CPE, CLE, etc. is offered but a certificate of attendance will be provided.